This Business News Story Was Uncovered By Us From: http://www.youngupstarts.com/2019/07/25/why-startups-must-liberate-from-hiring-platforms/
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by Rick Mac Gillis, founder and CEO of Dragon Cloud, author of “The New Frontier In Web Api Programming“
Startups, more than any other type of business, are sensitive to change. Macro and micro influences which others survive can often be fatal to that of the startup. Why? Because startups are fragile and fledgling. They are trying to find their place in the world and carve out a niche – all the while making every dollar go further.
This is a delicate balance that nine out of 10 startups do not find. This makes over reliance on outside forces very dangerous for that of the startup – and yet this is what many do when it comes to employment.
Freelancing is the preferred method of employment for startups all over the world. However, many use employment platforms like Fiverr or UpWork to make these hires – and the platforms themselves are anything but unshakable institutions. Therefore, startups are best advised not to tie their fate to third-party businesses.
Too big to fail.
What happens if – one day – the freelance platform used by any given startup from simply disappears? The work history, clients, portfolio and reviews are gone, just like that? Such a scenario would push hiring processes back to square one, potentially spelling disaster for those who solely contract online.
Platforms like Fiverr or UpWork may seem like staples of the industry that are too big to fail – but this far from the truth. Fiverr, for example, announced in May that it would file to go public in the U.S. In the filing, Fiverr revealed it had lost more than $38 million in 2018. The potential for big players to fail and take others down with them is a scary thought – and one that could happen if the startups themselves are not careful.
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